Weingarten Realty To Sell 25.5 Million Shares

HOUSTON (AP) — Weingarten Realty Investors on Thursday said it plans to sell 25.5 million common shares in a secondary public offering.

The real estate investment trust, which specializes in shopping center and industrial developments, said it also plans to grant the underwriters an option to purchase up to 3.8 million additional shares to cover overallotments.

Merrill Lynch & Co. and JPMorgan are acting as joint book-running managers for the offering.

The company intends to use the net proceeds from the sale to reduce borrowing on its revolving credit facility and for general corporate purposes, including repaying other debt.

Separately, the company reaffirmed its guidance for 2009. Weingarten said it still expects to report funds from operations between $2.30 and $2.60 per share, before considering the effect of the proposed offering.

Analysts surveyed by Thomson Reuters, on average, expect FFO for the year of $2.52, with estimates ranging between $2.32 and 43.10.

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, to net income.

Weingarten shares closed Thursday trading up 50 cents, or 3.3 percent, at $15.68. After the stock offering was announced, shares fell 58 cents, or 3.7 percent, to $15.10 in aftermarket electronic trading.